The city will reduce the Power Cost Adjustment (PCA) for bills going out in May and June, cutting the PCA nearly in half. The current PCA of $19 per 1,000 kilowatt hours (kWh) for residential customers will be reduced to $10 per 1,000 kWh for two months. Commercial customers will benefit from the reduction, too.
“We understand that many people are facing financial challenges during this time,” said Jody Young, Bushnell’s City Manager. “Significantly reducing the PCA portion of the bill means that the total electric bill will decrease by nearly 8% for an average residential customer using 1,000 kilowatt hours. We are doing what we can to help keep money in the pockets of our customers.”
The Power Cost Adjustment is a line item on power bills that reflects the variable cost of generating power, primarily power plant fuel costs. The city purchases its power from the Florida Municipal Power Agency (FMPA), an Orlando-based wholesale power provider for municipal utilities.
FMPA’s power costs have been coming down for years and are now lower than they have been since 2004. In addition, FMPA’s fuel costs have declined in 2020, so the Agency expects its power costs to be lower than projected.
“With low power costs and low natural gas prices, many of FMPA’s cities are in a position to bring these savings forward to customers now,” said FMPA General Manager and CEO Jacob Williams. “We are happy to partner with Bushnell to help its customers during this time.”